Tax Planning and Structuring
Planning has to happen before the transaction, not in the return. Once a deal is signed or a structure implemented, the tax outcome is largely fixed and the only remaining work is reporting it accurately. The distinction that matters throughout is between arranging affairs efficiently within the law and arrangements whose main purpose is obtaining a tax benefit, which attract anti avoidance provisions.
1
Understand
Commercial objective first
2
Model
Compare the options
3
Test
Anti avoidance exposure
4
Document
The position taken
5
Implement
Then report it
How We Advise
01
Understanding the Commercial Objective
We start with what you are actually trying to achieve commercially. Structures designed around tax rather than around the business tend to be both fragile and expensive to unwind when circumstances change.
- Commercial objective established before any tax analysis
- Existing structure and history documented
- Stakeholder and shareholder objectives understood
- Timeframe and exit intentions considered
02
Modelling the Options
Alternatives are modelled and compared on total cost, not tax alone. An option saving tax while adding administrative burden, audit cost or inflexibility is frequently the worse choice overall.
- Realistic alternatives identified and modelled
- Total cost compared including administration and compliance
- Cash flow timing of each option
- Sensitivity where assumptions may not hold
03
Anti Avoidance Assessment
We test each option against the general anti avoidance provisions and the specific ones that apply. Where an arrangement lacks commercial substance beyond the tax benefit, we say so rather than proceeding.
- General anti avoidance provisions considered
- Specific anti avoidance rules applicable to the transaction
- Commercial substance assessed honestly
- Reportable arrangement obligations identified
04
Documenting the Position
The file matters as much as the advice. Where a position is later queried, contemporaneous documentation of the reasoning and the commercial rationale is what supports it.
- Advice recorded in writing with the reasoning
- Commercial rationale documented at the time
- Supporting legislation and interpretation referenced
- File retained for the period a query could arise
05
Implementation and Reporting
Advice that is never implemented correctly achieves nothing. We work with your attorneys and accountants through implementation and make sure the transaction is reported consistently with the position taken.
- Coordination with legal advisors on implementation
- Accounting treatment aligned to the tax position
- Disclosure in returns consistent with the advice
- Post implementation review that reality matched the plan
What You Receive
- Written advice setting out the reasoning and the position taken
- Comparative model of realistic alternatives on total cost
- Anti avoidance assessment including reportable arrangement obligations
- Documented commercial rationale retained for the file
- Coordination with legal advisors through implementation
- Confirmation that reporting matched the advice given
Indicative Timeline
Planning work is transaction driven rather than calendar driven. Simple structuring questions take one to two weeks; transaction work runs alongside the deal and is governed by its timetable.
- Understanding and information gathering: three to five days
- Modelling and anti avoidance assessment: one to two weeks
- Written advice: within a week of analysis
- Implementation support: alongside the transaction
Where Planning Adds Value
Planning matters most at decision points, where the structure is still capable of being changed.
Group Structure
Holding company arrangements, subsidiaries and how profits and losses move between them.
Remuneration
The mix of salary, dividends, benefits and contributions for owner managers.
Transactions
Acquisitions, disposals and restructures, where the structure determines the outcome.
Property
Acquisition and holding structures, where transfer duty and VAT interact.
Succession
Passing a business on, including trusts and the estate consequences.
Loss Utilisation
Assessed losses and the rules restricting their use, which have tightened.
Frequently Asked Questions
Is tax planning legal?
Arranging your affairs efficiently within the law is entirely legitimate. Arrangements whose main purpose is obtaining a tax benefit without commercial substance are not, and they attract anti avoidance provisions. We will tell you which side a proposal falls on.
When should we involve you?
Before the transaction, always. Once a deal is signed or a structure implemented, the outcome is largely fixed. The most expensive conversations we have are the ones that begin after the event.
Should we operate through a trust?
Sometimes, for succession or asset protection reasons. Trusts are taxed at the highest rate with attribution rules that catch many arrangements, so they are rarely a tax saving on their own. The commercial reason has to come first.
What is the best salary and dividend mix?
It depends on the company profitability, your other income and what the business needs to retain. There is no universally correct answer, which is why it is modelled for your circumstances rather than answered from a rule of thumb.
What is a reportable arrangement?
Certain arrangements must be reported to SARS regardless of whether any tax benefit arises, and non reporting carries substantial penalties. Identifying whether an obligation exists is part of any structuring assessment.
Will you give us an opinion we can rely on?
We give written advice with the reasoning and supporting authority documented. Where a matter is genuinely uncertain we say so rather than expressing false confidence, and for some positions a formal opinion from tax counsel is the appropriate step.
Related Services
This sits inside our Taxation practice. Related work: Business Advisory for transaction support and due diligence, and Corporate Tax Compliance for reporting the position afterwards.
